– | Fourth Quarter Revenue of $48.0 Million, an Increase of 35% Year-Over-Year |
– | Quarterly Gross Margin of 74.6% as Compared to 72.7% in the Year Ago Quarter |
– | Issues Revenue Guidance of $49.0 Million - $50.0 Million for the First Quarter Fiscal 2019 and $224 Million - $226 Million for the Full Year Fiscal 2019 |
• | Revenue of $48.0 million, a 35% increase as compared to the $35.7 million reported in fourth quarter fiscal 2017. The revenue increase was primarily due to the continued growth of our customer base and higher revenue from existing customers, primarily due to expanded subscriptions. |
• | Gross Profit of $35.8 million, a 38% increase as compared to the $25.9 million reported in fourth quarter fiscal 2017. Gross margin of 74.6% as compared to the 72.7% reported in fourth quarter fiscal 2017. |
• | Net Loss and Non-GAAP Net Loss: |
• | Net loss of $17.0 million as compared to the $14.6 million net loss in fourth quarter fiscal 2017. The increased loss was primarily driven by increased operating expenses, primarily in sales and marketing, due to efforts to acquire new customers. |
• | Non-GAAP net loss of $9.6 million as compared to the $11.0 million non-GAAP net loss in the fourth quarter fiscal 2017. The improvement was primarily due to improved operating leverage realized through greater efficiencies in general and administration and sales and marketing. |
• | Net Loss Per Share and Non-GAAP Net Loss Per Share: |
• | Net loss per share of $0.18 based on 92.4 million weighted-average shares outstanding, compared to the net loss per share of $0.47 based on 31.2 million weighted-average shares outstanding in the fourth quarter fiscal 2017. |
• | Non-GAAP net loss per share of $0.10 based on 92.4 million weighted-average shares outstanding, as compared to the $0.35 non-GAAP net loss per share in the fourth quarter fiscal 2017 based on 31.2 million weighted-average shares outstanding. |
• | Readers are encouraged to review the tables labeled "Reconciliation of GAAP to Non-GAAP Financial Measures" at the end of this release. |
• | Balance Sheet: Cash, cash equivalents and marketable securities of $118.3 million as of January 31, 2018. |
• | Cash Flow: Cash used in operating activities for the fourth quarter of fiscal 2018 was $2.1 million as compared to cash used in operating activities of $0.9 million in the same period in fiscal 2017. The higher use of cash in the current period primarily reflects a greater use from working capital, driven primarily by a higher balance in accounts receivable. |
• | Revenue of $170.2 million, a 37% increase as compared to the $124.3 million reported in fiscal year ended January 31, 2017. The revenue increase was primarily due to the continued growth of our customer base and higher revenue from existing customers, primarily due to expanded subscriptions. |
• | Gross Profit of $126.1 million, a 44% increase as compared to the $87.3 million reported in fiscal year ended January 31, 2017. Gross margin of 74.1% as compared to the 70.3% reported in fiscal year ended January 31, 2017. |
• | Net Loss and Non-GAAP Net Loss: |
• | Net loss of $66.6 million as compared to the $43.2 million net loss in fiscal year ended January 31, 2017. The increased loss was primarily driven by increased operating expenses, primarily in sales and marketing, due to efforts to acquire new customers. |
• | Non-GAAP net loss of $44.2 million as compared to the $33.3 million non-GAAP net loss in the fiscal year ended January 31, 2017. |
• | Net Loss Per Share and Non-GAAP Net Loss Per Share: |
• | Net loss per share of $0.85 based on 78.6 million weighted-average shares outstanding, compared to the net loss per share of $1.39 based on 31.1 million weighted-average shares outstanding in the fiscal year ended January 31, 2017. |
• | Non-GAAP net loss per share of $0.47 based on 94.0 million non-GAAP shares outstanding at January 31, 2018, as compared to the $1.06 non-GAAP net loss per share in the fiscal year ended January 31, 2017 based on 31.4 million non-GAAP shares outstanding at January 31, 2017. |
• | Readers are encouraged to review the tables labeled "Reconciliation of GAAP to Non-GAAP Financial Measures" at the end of this release. |
• | Cash Flow: Cash used in operating activities for the fiscal year ended January 31, 2018 was $31.9 million as compared to cash used in operating activities of $7.7 million for the fiscal year ended January 31, 2017. The higher use of cash primarily reflects the greater loss in the current period as well as a greater use of working capital. |
• | Managed approximately 29.1 million attributes through approximately 1.5 million licenses1 to Yext's digital knowledge platform as of January 31, 2018, representing increases of 63% and 59%, respectively, as compared to January 31, 2017. |
• | Issued the Winter Product Release, which provides new services and features, including: the Yext Knowledge Assistant, a conversational UI that allows users to update the public data about their business |
• | Expanded the capabilities of the Yext App Directory through additional integrations with Agendize, Snaps and Octane. The Yext App Directory allows customers to connect the digital knowledge they are managing within Yext to other software systems used across their enterprise. |
• | Expanded the global reach of the industry-leading PowerListings® Network with new publishing partners in North America (CareDash) and Europe (Branchenbuch Deutschland). |
• | Awarded a Best in Biz Award (silver) for Best New Product of the Year in the healthcare category, and a Best in Biz Award (silver) for Best New Product Feature for the Intelligent Search Tracker, which brings brands into the intelligent future by providing a way to measure search rank as well as the control they have over the knowledge consumers see in search results. |
• | Named to the Great Place to Work® 2018 Best Workplaces in Technology list, published by Fortune Magazine. |
• | First Quarter Fiscal 2019 Outlook: |
• | Revenue is projected to be $49.0 million to $50.0 million. |
• | Non-GAAP net loss per share is projected to be $0.11 to $0.13, which assumes 94.8 million weighted-average shares outstanding. |
• | Full Year Fiscal 2019 Outlook: |
• | Revenue is projected to be $224 million to $226 million. |
• | Non-GAAP net loss per share is projected to be $0.44 to $0.46, which assumes 97.3 million weighted-average shares outstanding. |
• | Readers are encouraged to review the tables labeled "Reconciliation of GAAP to Non-GAAP Financial Measures" at the end of this release. |
January 31, 2018 | January 31, 2017 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 34,367 | $ | 24,420 | |||
Marketable securities | 83,974 | — | |||||
Accounts receivable, net of allowances of $231 and $189, respectively | 44,656 | 27,646 | |||||
Prepaid expenses and other current assets | 7,703 | 3,511 | |||||
Deferred commissions, current | 9,342 | 6,252 | |||||
Total current assets | 180,042 | 61,829 | |||||
Restricted cash | — | 500 | |||||
Property and equipment, net | 11,438 | 11,613 | |||||
Goodwill | 4,924 | 4,444 | |||||
Intangible assets, net | 2,761 | 3,128 | |||||
Other long term assets | 4,324 | 4,951 | |||||
Total assets | $ | 203,489 | $ | 86,465 | |||
Liabilities, convertible preferred stock and stockholders’ equity (deficit) | |||||||
Current liabilities: | |||||||
Accounts payable, accrued expenses and other current liabilities | $ | 27,416 | $ | 25,633 | |||
Deferred revenue, current | 89,474 | 57,112 | |||||
Deferred rent | 1,288 | 936 | |||||
Total current liabilities | 118,178 | 83,681 | |||||
Deferred rent, non-current | 3,213 | 4,348 | |||||
Long term debt | — | 5,000 | |||||
Other long term liabilities | 645 | 576 | |||||
Total liabilities | 122,036 | 93,605 | |||||
Commitments and contingencies | |||||||
Convertible preferred stock: | |||||||
Convertible preferred stock, $0.001 par value per share; zero and 43,705,690 shares authorized at January 31, 2018 and 2017, respectively; zero and 43,594,753 shares issued and outstanding at January 31, 2018 and 2017, respectively | — | 120,615 | |||||
Stockholders’ equity (deficit): | |||||||
Preferred stock, $0.001 par value per share; 50,000,000 and zero shares authorized at January 31, 2018 and 2017, respectively; zero shares issued and outstanding at January 31, 2018 and 2017 | — | — | |||||
Common stock, $0.001 par value per share; 500,000,000 and 200,000,000 shares authorized at January 31, 2018 and 2017, respectively; 100,482,264 and 37,900,051 shares issued at January 31, 2018 and 2017, respectively; 93,976,930 and 31,394,717 shares outstanding at January 31, 2018 and 2017, respectively | 100 | 38 | |||||
Additional paid-in capital | 328,344 | 52,805 | |||||
Accumulated other comprehensive loss | (1,636 | ) | (1,808 | ) | |||
Accumulated deficit | (233,450 | ) | (166,885 | ) | |||
Treasury stock, at cost | (11,905 | ) | (11,905 | ) | |||
Total stockholders’ equity (deficit) | 81,453 | (127,755 | ) | ||||
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | $ | 203,489 | $ | 86,465 |
Three months ended January 31, | Fiscal year ended January 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue | $ | 48,020 | $ | 35,671 | $ | 170,201 | $ | 124,261 | |||||||
Cost of revenue | 12,208 | 9,724 | 44,095 | 36,950 | |||||||||||
Gross profit | 35,812 | 25,947 | 126,106 | 87,311 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing | 35,089 | 26,161 | 126,980 | 81,529 | |||||||||||
Research and development | 7,250 | 5,108 | 25,687 | 19,316 | |||||||||||
General and administrative | 10,976 | 8,944 | 40,079 | 29,166 | |||||||||||
Total operating expenses | 53,315 | 40,213 | 192,746 | 130,011 | |||||||||||
Loss from operations | (17,503 | ) | (14,266 | ) | (66,640 | ) | (42,700 | ) | |||||||
Investment income | 394 | — | 1,135 | 34 | |||||||||||
Interest expense | (85 | ) | (78 | ) | (359 | ) | (150 | ) | |||||||
Other income (expense), net | 128 | (165 | ) | (539 | ) | (266 | ) | ||||||||
Loss from operations before income taxes | (17,066 | ) | (14,509 | ) | (66,403 | ) | (43,082 | ) | |||||||
Benefit from (provision for) income taxes | 68 | (64 | ) | (162 | ) | (68 | ) | ||||||||
Net loss | $ | (16,998 | ) | $ | (14,573 | ) | (66,565 | ) | $ | (43,150 | ) | ||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.18 | ) | $ | (0.47 | ) | $ | (0.85 | ) | $ | (1.39 | ) | |||
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted | 92,400,382 | 31,184,117 | 78,632,448 | 31,069,695 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||
Foreign currency translation adjustment | $ | 82 | $ | 15 | $ | 492 | $ | (541 | ) | ||||||
Unrealized loss on marketable securities | (172 | ) | — | (320 | ) | — | |||||||||
Total comprehensive loss | $ | (17,088 | ) | $ | (14,558 | ) | $ | (66,393 | ) | $ | (43,691 | ) |
Fiscal year ended January 31, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (66,565 | ) | $ | (43,150 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 5,123 | 4,082 | |||||
Provision for bad debts | 478 | 653 | |||||
Stock-based compensation expense | 22,360 | 9,851 | |||||
Change in fair value of convertible preferred stock warrant liability | 491 | 253 | |||||
Deferred income taxes | (129 | ) | 31 | ||||
Amortization of deferred financing costs | 140 | 104 | |||||
Amortization of premium on marketable securities | 156 | — | |||||
Gain on sale of marketable securities | (1 | ) | — | ||||
Changes in operating assets and liabilities: | |||||||
Restricted cash | 500 | 5,789 | |||||
Accounts receivable | (17,036 | ) | (4,117 | ) | |||
Prepaid expenses and other current assets | (4,043 | ) | (1,642 | ) | |||
Deferred commissions | (4,420 | ) | (5,573 | ) | |||
Other long term assets | (358 | ) | (430 | ) | |||
Accounts payable, accrued expenses and other current liabilities | 350 | 6,037 | |||||
Deferred revenue | 31,753 | 20,942 | |||||
Deferred rent | (807 | ) | (590 | ) | |||
Other long term liabilities | 99 | 17 | |||||
Net cash used in operating activities | (31,909 | ) | (7,743 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of marketable securities | (110,644 | ) | — | ||||
Maturities of marketable securities | 20,154 | — | |||||
Sales of marketable securities | 6,041 | — | |||||
Capital expenditures | (3,674 | ) | (3,505 | ) | |||
Purchases of intangible assets | — | (298 | ) | ||||
Net cash used in investing activities | (88,123 | ) | (3,803 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from initial public offering, net of underwriting discounts and commissions | 123,527 | — | |||||
Payments of deferred offering costs | (4,263 | ) | (170 | ) | |||
Proceeds from exercise of stock options | 11,610 | 1,321 | |||||
Proceeds from exercise of warrants | 79 | — | |||||
Proceeds from borrowings on Revolving Line | — | 5,000 | |||||
Repayments on Revolving Line | (5,000 | ) | — | ||||
Payments of deferred financing costs | (99 | ) | (183 | ) | |||
Proceeds from employee stock purchase plan withholdings | 3,750 | — | |||||
Net cash provided by financing activities | 129,604 | 5,968 | |||||
Effect of exchange rate changes on cash and cash equivalents | 375 | (30 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 9,947 | (5,608 | ) | ||||
Cash and cash equivalents at beginning of period | 24,420 | 30,028 | |||||
Cash and cash equivalents at end of period | $ | 34,367 | $ | 24,420 |
Three months ended January 31, 2018 | |||||||||||
GAAP | Stock-Based Compensation Expense | Non-GAAP | |||||||||
Cost and expenses: | |||||||||||
Cost of revenue | $ | 12,208 | $ | (512 | ) | $ | 11,696 | ||||
Gross profit | $ | 35,812 | $ | (512 | ) | $ | 36,324 | ||||
Sales and marketing | $ | 35,089 | $ | (3,644 | ) | $ | 31,445 | ||||
Research and development | $ | 7,250 | $ | (1,323 | ) | $ | 5,927 | ||||
General and administrative | $ | 10,976 | $ | (1,879 | ) | $ | 9,097 | ||||
Loss from operations | $ | (17,503 | ) | $ | (7,358 | ) | $ | (10,145 | ) | ||
Net loss | $ | (16,998 | ) | $ | (7,358 | ) | $ | (9,640 | ) |
Three months ended January 31, 2017 | |||||||||||
GAAP | Stock-Based Compensation Expense | Non-GAAP | |||||||||
Cost and expenses: | |||||||||||
Cost of revenue | $ | 9,724 | $ | (136 | ) | $ | 9,588 | ||||
Gross profit | $ | 25,947 | $ | (136 | ) | $ | 26,083 | ||||
Sales and marketing | $ | 26,161 | $ | (1,649 | ) | $ | 24,512 | ||||
Research and development | $ | 5,108 | $ | (557 | ) | $ | 4,551 | ||||
General and administrative | $ | 8,944 | $ | (1,193 | ) | $ | 7,751 | ||||
Loss from operations | $ | (14,266 | ) | $ | (3,535 | ) | $ | (10,731 | ) | ||
Net loss | $ | (14,573 | ) | $ | (3,535 | ) | $ | (11,038 | ) |
Fiscal year ended January 31, 2018 | |||||||||||
GAAP | Stock-Based Compensation Expense | Non-GAAP | |||||||||
Cost and expenses: | |||||||||||
Cost of revenue | $ | 44,095 | $ | (1,459 | ) | $ | 42,636 | ||||
Gross profit | $ | 126,106 | $ | (1,459 | ) | $ | 127,565 | ||||
Sales and marketing | $ | 126,980 | $ | (11,121 | ) | $ | 115,859 | ||||
Research and development | $ | 25,687 | $ | (3,756 | ) | $ | 21,931 | ||||
General and administrative | $ | 40,079 | $ | (6,024 | ) | $ | 34,055 | ||||
Loss from operations | $ | (66,640 | ) | $ | (22,360 | ) | $ | (44,280 | ) | ||
Net loss | $ | (66,565 | ) | $ | (22,360 | ) | $ | (44,205 | ) |
Fiscal year ended January 31, 2017 | |||||||||||
GAAP | Stock-Based Compensation Expense | Non-GAAP | |||||||||
Cost and expenses: | |||||||||||
Cost of revenue | $ | 36,950 | $ | (590 | ) | $ | 36,360 | ||||
Gross profit | $ | 87,311 | $ | (590 | ) | $ | 87,901 | ||||
Sales and marketing | $ | 81,529 | $ | (4,359 | ) | $ | 77,170 | ||||
Research and development | $ | 19,316 | $ | (1,954 | ) | $ | 17,362 | ||||
General and administrative | $ | 29,166 | $ | (2,948 | ) | $ | 26,218 | ||||
Loss from operations | $ | (42,700 | ) | $ | (9,851 | ) | $ | (32,849 | ) | ||
Net loss | $ | (43,150 | ) | $ | (9,851 | ) | $ | (33,299 | ) |
Three months ended January 31, | |||||||
2018 | 2017 | ||||||
Net loss | $ | (16,998 | ) | $ | (14,573 | ) | |
Stock-based compensation expense | 7,358 | 3,535 | |||||
Non-GAAP net loss | $ | (9,640 | ) | $ | (11,038 | ) | |
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.18 | ) | $ | (0.47 | ) | |
Stock-based compensation expense per share | 0.08 | 0.12 | |||||
Non-GAAP net loss per share attributable to common stockholders, basic and diluted | $ | (0.10 | ) | $ | (0.35 | ) | |
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted | 92,400,382 | 31,184,117 |
Fiscal year ended January 31, | |||||||
2018 | 2017 | ||||||
Net loss | $ | (66,565 | ) | $ | (43,150 | ) | |
Stock-based compensation expense | 22,360 | 9,851 | |||||
Non-GAAP net loss | $ | (44,205 | ) | $ | (33,299 | ) | |
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.85 | ) | $ | (1.39 | ) | |
Stock-based compensation expense per share | 0.28 | 0.32 | |||||
Non-GAAP unweighted adjustment | 0.10 | 0.01 | |||||
Non-GAAP net loss per share attributable to common stockholders, basic and diluted | $ | (0.47 | ) | $ | (1.06 | ) | |
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted | 78,632,448 | 31,069,695 | |||||
Non-GAAP unweighted adjustment | 15,344,482 | 325,022 | |||||
Non-GAAP number of shares outstanding in computing non-GAAP net loss per share attributable to common stockholders, basic and diluted | 93,976,930 | 31,394,717 |
Three months ended January 31, | |||||||
2018 | 2017 | ||||||
Net cash (used in) provided by: | |||||||
Net loss | $ | (16,998 | ) | $ | (14,573 | ) | |
Adjustments to net loss for non-cash items | 8,854 | 5,286 | |||||
Changes in operating assets and liabilities | 6,065 | 8,382 | |||||
Operating activities | (2,079 | ) | (905 | ) | |||
Investing activities | 7,238 | (607 | ) | ||||
Financing activities | 7,950 | 5,121 | |||||
Effect of exchange rate changes on cash and cash equivalents | 146 | 83 | |||||
Net increase in cash and cash equivalents | 13,255 | 3,692 | |||||
Cash and cash equivalents at beginning of period | 21,112 | 20,728 | |||||
Cash and cash equivalents at end of period | $ | 34,367 | $ | 24,420 |